Property Investors vs First Time Buyers
Today is the second opportunity in the year to attend the UK’s largest overseas property exhibition, A Place in the Sun Live which runs from Friday 28th to Sunday 30th at the NEC Birmingham. Anyone with a serious interest in buying an international property from those struggling to get a foot on the UK property ladder, to sun seekers and professional investors looking to expand their portfolios, this is a ‘must-attend’ event. The exhibition season is well under way with a host of shows around the UK and globally dedicated to investment and lifestyle purchases overseas but a debate is raging whether property investment home or abroad is having a serious impact on global first time buyers.
Last weekend saw over 14,000 overseas property home buyers flock to London’s ExCel centre as The Property Investor Show returned for its 17th consecutive year. The 2007 showcase proved to be the biggest and best so far, with over 300 developers, estate agents, mortgage brokers, trade associations, overseas property specialists and financial advisers on hand to satisfy the British public’s undiminished interest in all things property. The over 65% of the show dedicated to investing abroad is a testament to the huge numbers of Brits turning to emerging foreign markets as a strong contender when it comes to investing their hard earned cash. Showcasing a truly diverse cross section of real estate markets from riskier Brazil, North Cyprus and Isla Margarita to family favourites Spain, France and Florida, nearly every corner of the globe is represented.
Nick Clark, Managing Director of the Property Investor Show, comments: “This year’s Property Investor Show was hugely successful. Notably many of the visitors over the weekend were experienced investors with both the equity and knowledge behind them to build substantial portfolios. These investors essentially underpin the buy-to-let market in the UK. The overwhelming feeling from both visitors and exhibitors was that the property market still has much to offer investors and this was evident with a wide range of opportunities on offer both in the UK and overseas markets.”
A survey carried out at the show also revealed that almost 70% of investors were seeking alternatives to traditional savings or investments in UK banks or building societies. In particular, the overseas market is proving popular with 59% saying they were swayed by high returns in other countries.
One of the most popular sold out events was the Friday debate, on the hot topic of “Does the ‘Credit Crunch’ mean Bye Bye Buy-to Let or Business as Usual”, and attracted a capacity audience of over 150 people. The events profile was raised somewhat by a protest conducted by Priced Out - the campaign for affordable house prices, to highlight the plight of first time buyers of particular the current UK housing climate where the average house price in the UK now stands at £210,578.
Priced Out believe property investors are unaware that investment in residential property is a significant contributor to house price inflation, which has rarely dipped below 10% per annum over the past 8 years and this coupled with a serious lack of housing supply is pushing would-be owner-occupiers out of the market. The situation is often exacerbated by ‘parent’ investors trying to fund their own children’s home owning ambitions by assisting them with the deposit knowingly adding to the problem whilst further afield markets such as Spain and France regional market prices have been forced out of the reach of local buyers by wealthy foreigners buying up land and property contributing to supply and demand issues. Dubbed the gold rush of the millennium the effect on UK house prices can be seen clearly demonstrated in Figure 1 below which shows data from the Council of Mortgage Lenders.
Since Buy-To-Let (BTL) mortgages first started becoming popular, the number of First-Time-Buyer (FTB) mortgages has been directly affected, dropping markedly since 2002. The number of FTB mortgages was quickly overtaken by the unprecedented surge in property investment, dropping around 30% while BTL investment increased unabated.
Property investment, domestic or international is the newest form of wealth creation for the masses and has become an asset class in its own right. The general view being that the property market continues to offer good investment opportunities, despite the recent turbulence in the finance markets the downside being that first time buyers are a casualty of this new found money making opportunity.
Amirthu Amul said,
September 29, 2007 @ 11:39 am
When going to buy or sell a home, your first step should be finding a honest and hard-working realtor.
When going to buy or sell a home, your first step should be finding an honest and hard-working realtor. You can find a real estate agent by keeping an eye out for advertisements, calling your local real estate broker, or through the internet.
The role of a real estate agent is to represent your best interests in a real estate transaction. They work off of a commission, normally 6% of the sales price of the home. In most cases, that commission is split equally between the realtor representing the buyer and the realtor representing the seller. For a person buying a home, the service of the real estate agent is free, because commission is paid by the seller. The buyer, however, is responsible for most of the closing costs. The closing costs will be explained to you by your realtor and will be on the documents you sign when you go to the title company. Closing costs can also be negotiated on during the contract process.
The real estate agent, through their broker, has access to all of the MLS (Multiple Listing Service) listed homes in your area of interest. If you are a home buyer, the realtor can provide you with information about homes for sale that meet your criteria. They will then bring you to these homes and let you inside to see them. If you are selling a home, the realtor will list your home in the MLS, post a “For Sale” sign in your yard, and hold open houses to attract buyers. Be wary of discount realtors that offer to list your home for a lower commission. Studies show that, in most cases, your home will stay on the market longer and you end up selling it for a lower price than what you intended.
A real estate transaction is a complicated process that involves many steps and is best done with the help of a trained, licensed professional. A realtor can save you the headache of dealing with the other party in the sale, getting together the contract, and submitting all the documents to the title company. So when you are ready to buy or sell a house, contact the local real estate agent.
Winter Sun Properties Just Got Cheaper | Overseas Property Investment Blog | Nubricks said,
October 9, 2007 @ 3:36 pm
[…] the region’s huge presence and the high levels of interest in it at the recent A Place In the Sun show at Birmingham’s NEC are anything to go by, the Caribbean real estate is going to be very big […]